RBC upgrades Potash Corp. but cuts price target |
| Globe and Mail - Dec 22, 2011 |
The prospect of falling potash and fertilizer prices in 2012 isn’t likely to take the sheen off shares of Potash Corp. of Saskatchewan Inc. (POT-N42.632.415.99%) next year, according to RBC Dominion Securities Inc.
Analyst Adam Schatzker believes that potash producers may cut back on production in order to keep prices up in 2012, and that Potash Corp. is well positioned for a recovery in 2012.
“The company has almost completed the major spending for its massive brownfield expansion program and we believe it will soon become a ‘cash cow’ as it takes advantage of healthy potash prices with growing sales volumes,” writes Schatzker. “In our opinion, Potash Corp. has the best portfolio of producing assets, coupled with four strategic investments.”
Upside: While lowering his 12-month price target to $50 (U.S.) per share (from $58 per share) due to reduced fertilizer price forecasts, Schatzker upgraded Potash Corp. to “outperform” from “sector perform,” based on the 24 per cent implied return to his price target compared to its peers under his coverage.
Read Full Article from Globe and Mail
- Posted: 2011-12-22 16:09:08
| More Stock Investor Place Company News |
 |
|
|
|
| Stock Investor Place Company News Archive |
|
|
|
